Sime Darby Plantation Bhd (SDP) recorded a net profit of RM190 million for the third quarter ended September 30, 2020 (3QFY20) compared to a net loss of RM243 million recorded in the same period in the previous year.
The increase was driven by soaring crude palm oil (CPO) and palm oil crude oil prices.
In a filing to Bursa Malaysia today, the company stated revenue for 3QFY20 increased by 13% to RM3.18 billion from RM2.82 billion previously.
The company's earnings per share was 2.8 sen compared to a loss of 3.5 sen per share previously.
For the nine-month period ending September 30, SDP informed that its net profit increased to RM1.04 billion from a net loss of RM142 million last year following a 9% increase in revenue to RM9.44 billion from RM8.69 billion.
According to SDP, the increase in profit on 3QFY20 was driven by the upstream segment revenue of the company.
In a separate statement, SDP chairman Tan Sri Megat Najmuddin Megat Khas said that for the rest of the financial year, his party would remain focused on providing value to stakeholders as the company went through the current challenging environment.
"We will continue to prioritize the health and safety of our stakeholders, the safety of our employees, our commitment to sustainability practices, human rights protection as well as our R&D and innovation initiatives," he said.
Meanwhile, SDP managing director Mohamad Helmy Othman Basha said although there were many challenges due to the Covid-19 outbreak in the global market, CPO prices continued to be supported in the second half of this year as palm oil demand increased and is expected to continue to soar in front.
He added that as a sector that provides important products to the world, the industry shows strengthening in times of global economic uncertainty.
Mohamad Helmy also encouraged Malaysians to seize employment opportunities in the palm oil industry at this time.
SDP shares last traded at RM5.17 with a market capitalization of RM35.59 billion.
